Cycle Trading

PRE-SUMMARY

Stocks broke below consolidation on Wednesday but found support at the 10 day moving average and closed higher on Thursday.

Stocks became stretched above the 10 day moving average and spent several sessions consolidating below the 7600 level, helping to allow the moving average time to catch up to price. Stocks broke bearishly out of consolidation on Wednesday. However, sellers failed to deliver bearish follow-through.

Stocks opened lower on Thursday and tested support at the rising 10 day moving average before recovering to close higher on the day. If stocks form a swing low and break above 7600, then that would indicate a continuation of the daily uptrend and signal a cycle band buy signal.

CYCLE ALIGNMENT

• Bullish